Republika Srpska – The Lowest GDP in Europe

Dragan Cavic, president of the National Democratic Movement (NDP) and representative in National Assembly of Republika Srpska, yesterday in parliamentary debate on the draft strategy of development of small and middle companies in RS, that the situation in Srpska is not very bright when it comes to this question. He said that statistics are approving this.

”Small and medium – sized business make up 95% of all businesses, and 75% of employed population works in this kind of companies. Without them, or with the unlikely position of those businesses Republika Srpska faces a huge problem. In 2010 Srpska had 40 909 SMEs (small and medium – sized businesses) and 145 017 employees working in them. At the end of 2014. we had 38 324 SMEs and 129 427 employees. The largest fall is registered on micro business. According to tax burden we are on the 179th place out of the 189 analyzed countries”, said Cavic.

He added that this is the first time that Republika Srpska in its history took the last place in Europe on GDP per capita, and that this is the fact that should be worried about. According to Cavic, solution lays in the overall reform of business in our country. This reforms means tax cuts and para-fiscal charges cuts, reduction of the corruption, administration reforms, removal of administrative barriers for the work of business entities etc.

Member of SNSD in National Assembly, Vanja Bajic, said that those data are correct, but that also that in this case the capital of the one state (in this case – Sarajevo) are not considered in it. He says that Banja Luka represents different situation, which can be seen, among other things, by the number of the days for the registration of the business entity.

”I would also like to raise the question to Minister: Is it real to registry company in the period 3 to 5 days, or is it prolonged for the longer period? I think that someone who has connections can start a business in 5 days, but it would be interesting to do some anonymous research, to check out is this really possible as it seems”, said Bajic.

The Srpska Times is the first English language magazine originating from Republika Srpska with the aim, priority and objective of reporting timely, verified and accurate information on the current events, processes and attitudes (official and public opinion) in Republika Srpska